Friday 29 Mar 2024
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KUALA LUMPUR (July 7): Shares in OSK Holdings jumped as much as eight sen or 3.64% to RM2.28, the highest point so far today, on the 15 sen special cash dividend.

Another reason contributing to the share price rally was that the group has promised there will be no lay-offs after the merger of the group with its property arm OSK Property Holdings Bhd (OSKP) and PJ Development Holdings Bhd (PJD), according to Interpacific Securities Sdn Bhd senior dealer Sam Ng.

"All these while, the counter was off investors' radar," he said, adding this was until the group announced a 15 sen special cash dividend yesterday (July 6).

Based on its share price of RM2.25, the dividend yield stood at 6.7%, making the stock seem 'undervalued', Ng explained.

Ng said OSK Holdings' net tangible assets (NTA) stood at RM2.92.

At 11.50am, OSK Holdings (fundamental: 1.4; valuation: 2.6) was traded at RM2.25, up five sen or 2.27%, with 2.32 million shares having changed hands.

In an Extraordinary General Meeting (EGM) yesterday, OSK Holdings' shareholders approved the group's acquisition of OSKP and PJD. It secured 99.97% of the votes polled at the meeting, paving the way for the merger to be completed by early September this year.

The corporate exercise involves OSK Holdings acquiring 72.4% and 31.6% equity interest in OSK Property and PJD, for RM346.4 million or RM1.95 apiece and RM223.64 million or RM1.56 each, respectively.

Thereafter, OSK Holdings will undertake a mandatory general offer to acquire the remaining shares and outstanding warrants in the two companies, from the minority shareholders and the warrant holders, respectively.

Apart from that, the group also declared a special cash dividend of 15 sen per share for the financial year ending December 2015, payable on Aug 4.

The ex-date is July 16, 2015.

(Notes: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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